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Acculturation, as a process of cultural change, has been related to a number of consequences including psychological distress. While some research has demonstrated how post‐migration stressors influence the adjustment of immigrants, it has been proposed that daily hassles—irritants in daily interactions—such as minor chronic problems with the in‐group and the out‐group have an even greater impact on adjustment than major life events. Furthermore, research has shown that ethnic identification profiles and discrimination are two factors closely associated with adjustment among immigrant populations. This study was, therefore, meant to further investigate the relationships among ethnic identity, discrimination (personal and collective), and adjustment (self‐esteem and depression) through a model proposing daily hassles as a mediator among these factors. There were 100 first‐ and second‐generation Lebanese‐Canadians who participated in the study. They completed a questionnaire measuring ethnic identification to their in‐ and out‐group, discrimination, hassles experienced with their in‐ and out‐group, depression, and self‐esteem. Path analyses revealed the mediating role of daily hassles between identity and discrimination, on the one hand, and indices of depression and self‐esteem, on the other. The results also demonstrated that greater experienced personal discrimination was associated with higher levels of experienced out‐group hassles and more out‐group hassles related to lower levels of adjustment. Processes of identity revealed that a higher level of Lebanese identity was associated with less experienced in‐ and out‐group hassles, which positively related to better adjustment. However, Canadian identity directly and positively related to depression. These results are discussed, first, with respect to their implications for current theorizing regarding the process of acculturation. Daily hassles would indeed now stand as a key mediating factor in the explanation of adjustment among immigrants. Second, the findings are deemed to have practical implications in term of the direction of programmes aimed at alleviating acculturative stress.